by Structured Settlement Watchdog
Questions continue regarding intermediaries, financial planners and settlement planners who distribute structured settlement payment rights (structured settlement derivatives) to investors, mislabeled as annuities (secondary market annuities).
Vancouver based Genex Capital is a company that distributes structured settlement derivatives to American investors through
Assured Annuity, billed as "your source for annuities".
Peculiar, in my opinion, is that Genex Capital has justified its continued marketing of structured settlement derivative investments as annuities by citing Merriam Webster, in particular the "Annuity Defined For Kids". "Annuities = Contracts providing for the payment of 'a sum of money payable yearly or at other regular intervals'. Unfortunately investing in structured settlement derivatives (that have been labeled annuities) is not for kids and people can lose all their money as Mr. & Mrs. Wall found out dealing with another intermediary. So I disagree with Genex Capital's use of the term annuity both in its company name and the product being sold to investors.
Following is is the legal definition of annuity that appears on the very same page of the Merriam Webster website. It puzzles me why Genex Capital, whose CEO promotes his legal degree in his bio, has not cited it instead.
- Annuity a contract (as with an insurance company) under which one or more persons receive annuities in return for prior fixed payments made by themselves or another (as an employer) [Merriam Webster dictionary legal definition of annuity-scroll down from link]
Here is a smattering of definitions of annuity from other sites including,among others, those of insurance regulators.
- An annuity is a contract between you (the annuity owner) and an insurance company. In return for your payment, the insurance company agrees to provide either a regular stream of income, the right to withdraw up to a certain percentage per year, or even a lump sum payment at some future time Annuity FYI
- "An annuity is a contract between you and an insurance company. You buy the annuity by making one or more premium payments to the insurance company. The insurance company makes income payments to you, for life or for a limited time." " Annuities | What Seniors Need To Know" California Department of Insurance 2012
- An annuity is a series of payments that acts similarly to a savings plan to provide primary or supplementary retirement income. An insurance company pays annuity benefits while you are alive (except for fixed-period annuities). DFS regulates life insurance agents and companies that sell annuities. Florida Department of Financial Services " Life Insurance and Annuities| A Guide for Consumers"
- "An annuity is an insurance contract typically used in retirement planning. It is designed to protect you from outliving your assets". Oregon Insurance Department retrieved March 6, 2017
- "Annuity - A contract in which the buyer deposits money with a life insurance company for investment. The contract provides for specific payments to be made at regular intervals for a fixed period or for life Texas Insurance Department retrieved March 6, 2017
Florida Suitability Questionnaire when annuities are sold Download Florida annuity suitability questionnaire.
In their definitions of annuity,. none of the above state regulatory agencies distinguish between annuities offered to consumers and purported annuities peddled by intermediaries or factoring companies to investor consumers.